Estate Planning and Income Tax Considerations After the American Taxpayer Relief Act of 2012
|
|
- Corey Garrison
- 5 years ago
- Views:
Transcription
1 _j _) _rml LJ-u-1.1 i Estate Planning and Income Tax Considerations After the American Taxpayer Relief Act of 2012 Robert Gardner May 22, 2013 C D BAKEILDONELSON,LJK txh'eliaiic Legislative History Economic Growth and Tax Relief Reconciliation Act of 2001 (a/k/a the Bush tax cuts or EGTRRA ). Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (the 2010 Act ). American Taxpayer Relief Act of 2012 ( ATRA ). 2
2 Historical and Current Exclusions and Rates YEAR ESTATE TAX EXCLUSION GIFT TAX EXCLUSION MAX ESTATE AND GIFT TAX RATE PORTABILITY OF EXCLUSION 2001 $ 675,000 $ 675,000 55% No ,000,000 1,000,000 50% No ,000,000 1,000,000 49% No ,500,000 1,000,000 48% No ,500,000 1,000,000 47% No ,000,000 1,000,000 46% No ,000,000 1,000,000 45% No ,000,000 1,000,000 45% No ,500,000 1,000,000 45% No ,000,000 1,000,000 35% Yes ,000,000 5,000,000 35% Yes ,120,000 5,120,000 35% Yes ,250,000 5, 250,000 40% Yes [1] Could elect to be subject to estate tax or no estate tax but carryover basis. [2] As adjusted for inflation. 3 ATRA Eliminated sunset provisions of EGGTRA and 2010 Act. Raised estate tax rate 35% to 40%. Made portability of estate tax exclusion permanent. Technical amendment - DSUEA equal to lesser of (i) basic exclusion amount or (ii) applicable exclusion amount of last deceased spouse minus the last deceased spouse s taxable estate. ( Clawback issue moot because no reduction of estate tax exclusion) 4
3 Effect of ATRA Estimates of 2,636,000 deaths in 2013, only 8, s required (3 out of every 1,000 deaths). If sunset had occurred, of 2,636,000 deaths in , s would have been required (39 out of every 1,000 deaths). 5 Items Not in ATRA but Still On the Watch List Restoration of estate tax parameters in effect in Elimination of valuation discounts for certain family entities. Require a minimum term for GRATs. Limit duration of GST tax exclusion to 90 years. Include grantor trusts in grantor s gross estate. 6
4 Portability Basics A person s applicable exclusion amount is equal to the sum of the person s basic exclusion amount plus the deceased spousal unused exclusion amount (if any) in the case of a surviving spouse. The deceased spousal unused exclusion amount ( DSUEA ) is the lesser of (a) the basic exclusion amount or (b) the last predeceased spouse s remaining unused exclusion amount. 7 Portability Basics (cont.) Election Surviving spouse can use DSUEA only if an election was made on predeceased spouse s estate tax return. Election made by appointed executor or administrator, or if none, by any person in actual or constructive possession of any property of the decedent. Surviving spouse cannot compel election by executor of deceased spouse absent a mandate in the Will or an agreement between the spouses. 8
5 Portability Basics (cont.) Portability election deemed made by timely filing 706. Can opt-out by checking election out box. Regulations allow for relaxed reporting requirements on the 706 where the return is made solely for the purpose of making the portability election. 9 Portability Basics (cont.) Address portability election in Wills. Address portability election in prenuptial agreements. 10
6 Factors Favoring Reliance on Portability Tax- deferred accounts. Step-up in income tax basis. Ease of planning. 11 Factors Favoring Reliance on Credit Shelter Planning Exclusion of post mortem appreciation. GST planning. Protection of assets. 12
7 Estate Planning After ATRA 3 basic categories of clients 1) Lower net worth clients. 2) Mid-range clients. 3) High net worth clients. 13 and Finally Review existing estate plans to consider changes in law. 14
8 Questions ^i^ 15
9 _j _) _rml LJ-u-1.1 i Income Tax Planning After the American Taxpayer Relief Act of 2012 (The Fiscal Cliff Legislation) Thomas J. Mahoney, Jr. Adam S. Winger C D BAKEILDONELSON,LJK txh'eliaiic New Tax Brackets for High-Income Taxpayers The Act creates a 39.6% income tax rate bracket and a 20% capital gains and qualified dividend rate bracket for high-income taxpayers that applies to income over a threshold amount, which will be adjusted for inflation in future years. The initial threshold amounts are: $400,000 for single individuals; $450,000 for married individuals filing joint returns; $425,000 for heads of households; and 1/2 of the married filing jointly threshold amount for married individuals filing separate returns. 2
10 New Tax Brackets for High-Income Taxpayers Calculating capital gains taxed at 20%: The 20% capital gain rate applies only to the gain that, when added to other taxable income, exceeds the taxable income threshold for the 39.6% rate bracket. If taxable income, calculated before taking capital gain into account, would be taxed at a rate lower than 39.6%, then capital gains are taxed at 15% up to the taxable income threshold for the 39.6% rate bracket and 20% on the excess. 3 New Tax Brackets for High-Income Taxpayers Example 1: Married filing joint return taxpayers earn $425,000 of ordinary income and $75,000 of net capital gains Income Type Amount Tax Rate Tax Due Ordinary Income $425,000 Net Capital Gain (NCG) $75,000 Taxable Income $500, % Threshold $450,000 NCG Below Threshold $25,000 15% $3,750 NCG Above Threshold $50,000 20% $10,000 Effective NCG Rate 18.33% 4
11 New Tax Brackets for High-Income Taxpayers Example 2: Married filing joint return taxpayers earn $150,000 of ordinary income and $350,000 of net capital gains Income Type Amount Tax Rate Tax Due Ordinary Income $150,000 Net Capital Gain (NCG) $350,000 Taxable Income $500, % Threshold $450,000 NCG Below Threshold $300,000 15% $45,000 NCG Above Threshold $50,000 20% $10,000 Effective NCG Rate 15.71% 5 The New Tax on Net Investment Income Under The 2010 Health Care Act The 2010 Health Care Act increased the Medicare portion of the selfemployment tax by.9% (to 3.8%) (the Additional Medicare Tax ) on earnings in excess of $250,000 in the case of married taxpayers filing a joint return, $125,000 for married taxpayers filing a separate return, and more than $200,000 for all other taxpayers, effective for tax years beginning after December 21, Proposed Regulations dealing with the additional Medicare tax were issued on November 30, 2012, along with FAQs available at the following link: Employed/Questions-and-Answers-for-the-Additional-Medicare-Tax 6
12 The New Tax on Net Investment Income The 2010 Health Care Act subjects investment income (rather than income derived from labor, as in the case of the SE tax), for the first time in the history of Social Security, to a similar tax (the NII Tax ). Effective January 1, 2013, new section 1411(a)(1) imposes a separate 3.8% tax on the lesser of (a) net investment income or (b) the excess of modified adjusted gross income ( MAGI ) over $250,000 in the case of married taxpayers filing a joint return, $125,000 for married taxpayers filing a separate return, and over $200,000 for all other taxpayers. 7 The New Tax on Net Investment Income Application to Individuals The tax is computed at 3.8% of the lesser of Net Investment Income or the amount by which a taxpayer s income exceeds $200,000 ($250k for Married Filing Jointly). Application to Trust/Estates The tax is computed at 3.8% of the lesser of the trust s undistributed Net Investment Income for such taxable year or the excess of the adjusted gross income over the dollar amount at which the highest tax bracket in section 1(e) begins for such taxable year. 8
13 The New Tax on Net Investment Income Net Investment Income (Section 1411(c)) the excess of the sum of: i. gross income from interest, dividends, annuities, royalties, and rents, other than such income which is derived in the ordinary course of a trade or business of a non-passive activity (determined under 469), ii. iii. other gross income derived from a passive (determined under 469) trade or business or financial instrument/commodity trading, and net gain (to the extent recognized) attributable to the disposition of property other than property held in a non-passive trade or business. OVER The deductions allowed by this subtitle which are properly allocable to such gross income or net gain. 9 The New Tax on Net Investment Income The exclusion language in 1411(c)(1)(A)(i) requires that the taxpayer clear two hurdles: 1) The income must be from a non-passive activity; and 2) The income must be derived in a trade or business. Hypo: Take for example, the prototypical situation of a taxpayer who owns real estate that he leases back to his active trade/business. - The activity is non-passive because Reg (f)(6) tells us that the income derived from renting property to a trade or business in which the taxpayer is a material participant is not treated as passive income. 10
14 The New Tax on New Investment Income I. Planning Considerations A. Investment Planning Purchase Municipal Bonds Municipal bond income is not subject to the tax on net investment income. Purchase non-dividend paying growth stocks The appreciation built-in to the these products will not result in additional investment income until the shares are sold, which provides clients with the ability to control the timing of this tax s application. Purchase Annuities Annuities can be used to manipulate net investment income by providing owners with an additional ability to control future income streams. Whole Life Insurance The cash buildup within these policies will not generate investment income. 11 The New Tax on New Investment Income B. Retirement Planning Retirement Accounts Although distributions from qualified accounts are not subject to the tax on net investment income, distributions from a traditional IRA or 401(k) will increase a recipients modified adjusted gross income higher, which may result in an avoidable expose to the surtax. As such, those with higher incomes or the potential to receive higher incomes in future years are incentivized to contribute (if possible), or convert (if beneficial), to Roth IRAs or Roth 401(k)s because distributions from these accounts will neither be subject to the surtax nor result in a higher modified adjusted gross income. 12
15 Recap: Scope of 3.8% NII Tax Under The 2010 Health Care Act Effective 1/1/2013 pl Earned Income Taxed at 3.8% (formerly 2.9%) FICA- payroll tax on wages (1/2 employer, ½ employee) SECA- selfemployment tax on net earnings from selfemployment (NESE) Note: NESE includes partnership distributive share unless the partner is a limited partner under section 1402(a)(13) I i Net Investment Incomes (NII) Taxed at 3.8% Interest, dividends, annuities, royalties, rents, gains from disposition of property, and gross income from business constituting a passive activity with respect to taxpayer under section 469, or constituting trading in financial instruments or commodities. Exempt from Medicare and NII Tax as Neither Earned Income or NII: Municipal bond interest, distributions from qualified retirement plan or IRA, active trade or business income passed through to non-passive S corporation shareholders, and limited partners and LLC members meeting the requirements for the limited partner exception. Source: ABA Section of Taxation Committee on S Corporations and Small Business 13 Tax Changes Under the Fiscal Cliff Legislation 5-Year S Corporation Built-in Gain Recognition Period Section 1374 When a C corporation makes a subchapter S election, the corporation is generally required to recognize income at the highest corporate tax rate on its net unrecognized built-in gain for a period of 10 years following the election. For purposes of determining the net unrecognized built-in gain for taxable years beginning in 2012 or 2013, however, the built-in gain recognition period is treated as a 5- year period instead of a 10-year period. Also, if an S corporation sells an asset and reports gain on the installment method in 2012 or 2013, the treatment of all payments are governed by the BIG rules applicable in the taxable year in which the sale was made. 14
16 Tax Changes Under the Fiscal Cliff Legislation 5-Year S Corporation Built-in Gain Recognition Period Planning Opportunities: S corporations with BIG recognition periods starting in years 2004 through 2008 can dispose of assets or liquidate in 2013 without recognizing NUBIG. S corporations that disposed of assets or liquidated in 2012 should confirm that they did not report NUBIG when it was not required. S corporations that sell assets and report the gain on the installment method will be treated as if the BIG recognition period is 5 years for all payments received from the sale. S corporations with BIG recognition periods starting in 2008 or later can reduce BIG for installment payments received more than 5 years from the effective date of their S elections. Consider stretching out installment sales and backloading installment payments to years for which the BIG recognition period is deemed to have expired. 15 Tax Changes Under the Fiscal Cliff Legislation Election to Expense & Bonus Depreciation Section 179 Expensing: Maximum amount that can be expensed for 2012 and 2013 is $500,000. This is a windfall for taxpayers who expected to be subject to a $139,000 limit in Investment-based phase-out amount for 2012 and 2013 is $2 million. After 2013, maximum expensing amount drops to $25,000, and investmentbased phase-out amount drops to $200,000. Off-the-shelf computer software can be expensed under Section 179 if placed in service in a tax year beginning before January 1,
17 Tax Changes Under the Fiscal Cliff Depreciation Allowances Election to Expense & Bonus Depreciation 50% bonus depreciation under Section 168(k) is extended to apply for qualified property acquired and placed in service before January 1, The 15-year cost recovery period for certain leasehold improvements, restaurant buildings and improvements, and retail improvements is extended to cover those that are placed in service before January 1, 2014, and up to $250,000 of such property can be expensed under Section Tax Changes Under the Fiscal Cliff Legislation New Markets & Low-income Housing Credits The $3.5 billion cap on the maximum annual amount of qualifying equity investments is extended through 2013, and the carryover period for unused new markets tax credits (including credits from 2010 and 2011) is extended through 2018 (they previously could not be carried forward to any year after 2016). The low-income housing tax credit is extended through
18 Tax Changes Under the Fiscal Cliff Legislation - Individuals Permanent AMT Relief Limitation on Itemized Deductions for High-Income Individuals Personal Exemption Phaseout for High Income Individuals Child Tax Credit Made Permanent Earned Income Credit Enhancements 19 Individual Tax Extenders in the Fiscal Cliff Legislation Teachers Classroom Expense Deduction for 2013 Exclusion of COD Income on Principal Residence for 2013 IRA Distributions to Charities through 2013 State and Local Sales Tax Deduction in Lieu of State Income Tax Deduction for 2013 Research Tax Credit through
The New Tax Relief Act: How Will You Be Impacted?
STRATEGIC THINKING The New Tax Relief Act: How Will You Be Impacted? The President signed the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 ( the Act ) on December 17th,
More informationAmerican Taxpayer Relief Act of 2012 Workshop
American Taxpayer Relief Act of 2012 Workshop John Kilroy, CPA, CFP May 14, 2013 Agenda Estate, Gift and GST provisions Individual Income Tax provisions Trust and Estate Income Tax provisions Business
More informationBollenbacher and Associates Certified Public Accountants Taxpayer Relief Act
Bollenbacher and Associates Certified Public Accountants 2012 Taxpayer Relief Act Highlights of the 2012 Taxpayer Relief Act (1) the elimination of EGTRRA sunsetting (Bush Tax Cuts), (2) tax rate increases
More informationFAMILY AND CHARITABLE PLANNING WITH RETIREMENT ACCOUNTS
FAMILY AND CHARITABLE PLANNING WITH RETIREMENT ACCOUNTS 2014 ESTATE TAX and INCOME TAX 1 PLANNING STRATEGIES FOR THE 3.8% NET INVESTMENT INCOME TAX 11 Net Investment Income Defined 14 Strategies to Reduce
More informationFAMILY AND CHARITABLE PLANNING WITH RETIREMENT ACCOUNTS
FAMILY AND CHARITABLE PLANNING WITH RETIREMENT ACCOUNTS 2014 ESTATE TAX and INCOME TAX 1 PLANNING STRATEGIES FOR THE 3.8% NET INVESTMENT INCOME TAX 11 Net Investment Income Defined 14 Strategies to Reduce
More informationRe: 2012 Year-End Tax Planning for Individuals
Re: 2012 Year-End Tax Planning for Individuals To Our Valued Clients and Friends: Year-end tax planning is always complicated by the uncertainty that the following year may bring and 2012 is no exception.
More informationMay 3, 2013 Circulation: 10,956. How to minimize income taxes for estates, trusts and beneficiaries
May 3, 2013 Circulation: 10,956 Game Change How to minimize income taxes for estates, trusts and beneficiaries May 3, 2013 Scott Goldberger and John Anzivino On Jan. 1, 2013, the income tax playing field
More informationHOW TO DEAL WITH INCOME AND ESTATE TAX TIMEBOMBS
HOW TO DEAL WITH INCOME AND ESTATE TAX TIMEBOMBS Nicholas J. Houle CPA/PFS CFP 2010 Ag Summit Principal December, 2010 LarsonAllen Financial LLC Chicago, IL Minneapolis, MN 612-376-4760 nhoule@larsonallen.com
More informationTime is running out to make important planning moves before the year s end, so don t delay.
2015 Year-end tax planning Time is running out to make important planning moves before the year s end, so don t delay. The changes in various tax provisions brought about with the 2012 Tax Act continue
More informationAmerican Taxpayer Relief Act of 2012 and Other 2012/2013 Tax Highlights 1. Suzanne L. Shier Director of Wealth Planning and Tax Strategy
American Taxpayer Relief Act of 2012 and Other 2012/2013 Tax Highlights 1 Suzanne L. Shier Director of Wealth Planning and Tax Strategy Amanda C. Andrews Wealth Planning Associate January 31, 2013 Chicago
More informationFamily Wealth Services 2013 year-end tax planning considerations for high-net-worth individuals and families
Family Wealth Services 2013 year-end tax planning considerations for high-net-worth individuals and families Dec. 3, 2013 Today s presenters Randy Abeles Family Wealth Services National Practice and Great
More information2013 TAX AND FINANCIAL PLANNING TABLES. An overview of important changes, rates, rules and deadlines to assist your 2013 tax planning.
2013 TAX AND FINANCIAL PLANNING TABLES An overview of important changes, rates, rules and deadlines to assist your 2013 tax planning. WHAT YOU WILL SEE IN THIS BROCHURE 2013 Income Tax Changes Tax Rates
More informationIndividual Income Tax Planning
18401 Murdock Circle Suite B Port Charlotte, FL 33948 941-627-4774 linda.cross@raymondjames.com www.raymondjames.com/sommervillegroup 2012 Key Numbers June 2012 Individual Income Tax Planning Adoption
More informationYear End Tax Planning for Individuals
Year End Tax Planning for Individuals December 2015 To Our Clients and Friends: Every individual can develop a year-end tax planning strategy that reflects his or her situation. Our office can help you
More information2017 INCOME AND PAYROLL TAX RATES
2017-2018 Tax Tables A quick reference for income, estate and gift tax information QUICK LINKS: 2017 Income and Payroll Tax Rates 2018 Income and Payroll Tax Rates Corporate Tax Rates Alternative Minimum
More informationYear-End Tax Planning Summary December 2015
Year-End Tax Planning Summary December 2015 Overview Thanks to the continued political gridlock in Washington, 2015 did not see comprehensive tax reform. However, on December 18th, Congress passed the
More informationMARKET TREND: With the enactment of exemption portability, clients may dismiss the need for lifetime estate planning, to their detriment.
The trusted source of actionable technical and marketplace knowledge for AALU members the nation s most advanced life insurance professionals. TOPIC: Issuance of Temporary Portability Regulations - Practical
More informationCongress Passes Fiscal Cliff Act
Congress Passes Fiscal Cliff Act Pulling back from the fiscal cliff at the 13th hour, Congress preserved most of the George W. Bush-era tax cuts and extended many other lapsed tax provisions. The Senate
More informationDecember 3, 2012 Professional Advisor Forum
EXPERIENCE THE RIGHT PARTNERSHIP December 3, 2012 Professional Advisor Forum 2012 Northern Trust Corporation northerntrust.com 1 EXPERIENCE THE RIGHT PARTNERSHIP northerntrust.com SURVIVING THE FISCAL
More informationline of Sight Tax Transitions Navigating the Continuing Complexities of a Changing Landscape Suzanne Shier Tax Strategist
line of Sight 2012 2013 Tax Transitions Navigating the Continuing Complexities of a Changing Landscape Suzanne Shier Tax Strategist We hope you enjoy the latest presentation from Northern Trust s Line
More informationOVERVIEW OF THE FEDERAL TAX SYSTEM AS IN EFFECT FOR 2013
OVERVIEW OF THE FEDERAL TAX SYSTEM AS IN EFFECT FOR 2013 Prepared by the Staff of the JOINT COMMITTEE ON TAXATION January 8, 2013 JCX-2-13 CONTENTS Page INTRODUCTION... 1 I. SUMMARY OF PRESENT-LAW FEDERAL
More informationTax Planning Considerations for 2015
Tax Planning Considerations for 2015 Most strategies that could have an impact on your taxes need to be made by December 31 if you want them reflected on your 2015 tax return. Executive summary As the
More informatione-pocket TAX TABLES 2017 and 2018 Quick Links: 2017 Income and Payroll Tax Rates 2018 Income and Payroll Tax Rates Corporate Tax Rates
e-pocket TAX TABLES 2017 and 2018 Quick Links: 2017 Income and Payroll Tax Rates 2018 Income and Payroll Tax Rates Corporate Tax Rates Alternative Minimum Tax Kiddie Tax Income Taxation of Social Security
More informationA Condensed Review of New Taxes Coming Your Way
A Condensed Review of New Taxes Coming Your Way by: Tony Meyer and Bob Romanchek With all of the factors that go into designing and quantifying executive compensation, the effects of the tax code do not
More informationOVERVIEW OF THE FEDERAL TAX SYSTEM AS IN EFFECT FOR 2013
OVERVIEW OF THE FEDERAL TAX SYSTEM AS IN EFFECT FOR 2013 Prepared by the Staff of the JOINT COMMITTEE ON TAXATION January 8, 2013 JCX-2-13R I. SUMMARY OF PRESENT-LAW FEDERAL TAX SYSTEM A. Individual Income
More informationCongress passes 2012 Taxpayer Relief Act and averts fiscal cliff tax consequences
Congress passes 2012 Taxpayer Relief Act and averts fiscal cliff tax consequences Page 1 of 8 In the early morning hours of January 1, 2013, the Senate passed the American Taxpayer Relief Act (the 2012
More information2013 YEAR-END INCOME TAX PLANNING FOR INDIVIDUALS
INTRODUCTION 2013 YEAR-END INCOME TAX PLANNING FOR INDIVIDUALS As the end of 2013 approaches, it s time to consider planning moves that could reduce your 2013 taxes. Year-end planning is particularly important
More informationTax Planning. in a Changing World. Eric Hormel CPA, Shareholder November 7, 2012
Tax Planning in a Changing World Eric Hormel CPA, Shareholder November 7, 2012 The Fiscal Cliff 2013 Tax Rate Increases Without legislative action, tax rates will go up across the board for most tax payers:
More information2011 Tax Guide. What You Need to Know About the New Rules
2011 Tax Guide What You Need to Know About the New Rules Tax Guide 2011 This guide is not intended to be tax advice and should not be treated as such. Each individual s tax situation is different. You
More informationTHE NEW YEAR S DAY TAX BILL: What Contractors Need to Know Right Now
THE NEW YEAR S DAY TAX BILL: What Contractors Need to Know Right Now Rich Shavell, CPA, CVA, CCIFP Shavell & Company, P.A. info@shavell.net www.shavell.net 1 THE DISCLAIMER Information provided herein
More information2017 Tax Planning Tables
2017 Tax Planning Tables 2017 Important Deadlines Last day to January 17 Pay fourth-quarter 2016 federal individual estimated income tax January 25 Buy in to close a short-against-the-box position (regular-way
More information901 East Cary Street, Suite 1100, Richmond, VA
2017 Tax Planning & Reference Guide The 2017 Tax Planning & Reference Guide is designed as a reference and is not intended to function as tax advice. Please consult your professional accounting advisor
More information2016 Tax Planning Tables
2016 Tax Planning Tables 2016 Important Deadlines Last day to January 15 Pay fourth-quarter 2015 federal individual estimated income tax January 26 Buy in to close a short-against-the-box position (regular-way
More information2013 NEW DEVELOPMENTS LETTER
2013 NEW DEVELOPMENTS LETTER INTRODUCTION We have witnessed more tax changes and developments in 2013 than in any year in recent memory, and these changes impact virtually every individual and business
More informationIndividual year-end planning and tax law updates
Individual yearend planning and tax law updates October 29, 2013 Baker Tilly refers to Baker Tilly Virchow Krause, LLP, an independently owned and managed member of Baker Tilly International. 1 Presenters
More informatione-pocket TAX TABLES 2014 and 2015 Quick Links:
e-pocket TAX TABLES 2014 and 2015 Quick Links: 2014 Income and Payroll Tax Rates 2015 Income and Payroll Tax Rates Corporate Tax Rates Alternative Minimum Tax Kiddie Tax Income Taxation of Social Security
More informationWEALTH MANAGEMENT 2016 FINANCIAL PLANNING LIMITS AND TAX RATE SCHEDULES
WEALTH MANAGEMENT 2016 FINANCIAL PLANNING LIMITS AND TAX RATE SCHEDULES Building success together. One advisor at a time. Addressing the complexities of financial planning with your most valuable clients
More informationOVERVIEW OF THE FEDERAL TAX SYSTEM AS IN EFFECT FOR 2014
OVERVIEW OF THE FEDERAL TAX SYSTEM AS IN EFFECT FOR 2014 Prepared by the Staff of the JOINT COMMITTEE ON TAXATION March 28, 2014 JCX-25-14 CONTENTS Page INTRODUCTION... 1 I. SUMMARY OF PRESENT-LAW FEDERAL
More informationThe current tax landscape and planning opportunities for clients
The current tax landscape and planning opportunities for clients Christopher P. Hennessey Lawyer and CPA Member, Putnam Business Advisory Group Faculty Director, Babson College Executive Education Not
More informatione-pocket TAX TABLES 2016 and 2017 Quick Links: 2016 Income and Payroll Tax Rates 2017 Income and Payroll Tax Rates
e-pocket TAX TABLES 2016 and 2017 Quick Links: 2016 Income and Payroll Tax Rates 2017 Income and Payroll Tax Rates Corporate Tax Rates Alternative Minimum Tax Kiddie Tax Income Taxation of Social Security
More informationplanning tables Investment and Insurance Products: NOT FDIC Insured NO Bank Guarantee MAY Lose Value
2019 tax planning tables Investment and Insurance Products: NOT FDIC Insured NO Bank Guarantee MAY Lose Value 2019 important deadlines Last day to January 15 Pay fourth-quarter 2018 federal individual
More informationOVERVIEW OF THE FEDERAL TAX SYSTEM AS IN EFFECT FOR 2015
OVERVIEW OF THE FEDERAL TAX SYSTEM AS IN EFFECT FOR 2015 Prepared by the Staff of the JOINT COMMITTEE ON TAXATION March 30, 2015 JCX-70-15 CONTENTS Page INTRODUCTION... 1 I. SUMMARY OF PRESENT-LAW FEDERAL
More informationThe top federal income tax rate has increased from 35% to 39.6%. All other federal income tax rates are the same as they were in 2012.
Gift Planning and the New Tax Law PG Calc Featured Article, February 2013 http://www.pgcalc.com/about/featured-article-february-2013.htm The American Taxpayer Relief Act (ATRA) passed by Congress on January
More informationWEALTH STRATEGY REPORT
WEALTH STRATEGY REPORT The 3.8% Surtax on Investment Income - Trusts INTRODUCTION Beginning in 2013, net investment income (NII, as defined in the statute) is subject to an additional 3.8% surtax to the
More information2014 TAX UPDATE. Income Tax Changes. March 2014
March 2014 2014 TAX UPDATE Although delayed because of last fall s government shutdown, tax filing season is officially upon us! Several important changes to the U.S. tax code went into effect during 2013,
More informatione4 Brokerage, LLC th St. South Suite C Fargo, ND
e4 Brokerage, LLC 2280 45th St. South Suite C Fargo, ND 58104 701-356-1270 866-356-3203 sbergee@e4brokerage.com www.e4brokerage.com 2017 Tax Facts Guide 1/01/2017 Page 1 of 28, see disclaimer on final
More information2012 FEDERAL TAX UPDATE FOR INDIVIDUALS
2012 FEDERAL TAX UPDATE FOR INDIVIDUALS I. TAX RATE STRUCTURE FOR 2012 AND 2013. Michael J. Reilly, CPA/ABV, CVA, CFF, CDA Partner Dannible & McKee, LLP Financial Plaza 221 South Warren Street Syracuse,
More informatione-pocket TAX TABLES Quick Links: 2017 Income and Payroll Tax Rates 2018 Income and Payroll Tax Rates Corporate Tax Rates Alternative Minimum Tax
e-pocket TAX TABLES Quick Links: 2017 Income and Payroll Tax Rates 2018 Income and Payroll Tax Rates Corporate Tax Rates Alternative Minimum Tax Kiddie Tax Income Taxation of Social Security Benefits Personal
More informationThe Intersection of Wealth in America & the American Taxpayer Relief Act of
Northern Trust Professional Advisor Series The Intersection of Wealth in America & the American Taxpayer Relief Act of 2012 1 Tami F. Conetta Advisory Practice Executive, East Region Gail K. Neuharth Wealth
More information(married filing jointly) indexed for inflation in future years.
2 AMERICAN TAXPAYER RELIEF ACT OF 2012 excess of the applicable threshold. These thresholds will be indexed for inflation in future years. Because the tax rates are permanent, for 2013 you can employ the
More informationIncome & Estate Tax Update At The Edge Of The Fiscal Cliff
Income & Estate At The Edge Of The Fiscal Cliff By: Michael E. Kitces, MSFS, MTAX, CFP, CLU, ChFC, RHU, REBC, CASL Partner, Director of Research, Pinnacle Advisory Group Publisher, The Kitces Report, www.kitces.com
More information2012 TO 2013 TAX TRANSITIONS SUMMARY
2012 TO 2013 TAX TRANSITIONS SUMMARY September 2012 Individual Income Tax 2012 Law Scheduled 2013 Law* Green Book Q3 and Q4 2012 and Q1 2013 General Overview Lower rates with special treatment of qualified
More informationExpiring Tax Provisions
Expiring Tax Provisions The term Bush-era tax cuts or Bush tax cuts is often used to describe the tax related reductions that were contained in legislation enacted by Congress in 2001 and 2003, the Economic
More informationTax Cuts and Jobs Act. Durham Chamber of Commerce Public Policy Meeting January 9, 2018
Tax Cuts and Jobs Act Durham Chamber of Commerce Public Policy Meeting January 9, 2018 Tax Cuts in Billions Corporate/Business ($653) S-Corps/Partnership/Sole Proprietor ($414) International Tax Changes
More information2018 tax planning tables
2018 tax planning tables Investment and Insurance Products: NOT FDIC Insured NO Bank Guarantee MAY Lose Value 2018 important deadlines Last day to January 16 Pay fourth-quarter 2017 federal individual
More informationIMPACT OF THE ELECTION President-Elect Trump proposes significant changes to the tax law including:
December 2016 To Our Clients and Friends: While many of you are making plans for year-end holidays, what should not be overlooked this time of year is year-end tax planning, especially considering the
More information2018 Tax Planning & Reference Guide
2018 Tax Planning & Reference Guide The 2018 Tax Planning & Reference Guide is designed to be a reference only and is not intended to provide tax advice. Please consult your professional tax advisor prior
More informationYour Comprehensive Guide to 2013 Year-End Tax Planning
Your Comprehensive Guide to 2013 Year-End Tax Planning Early in 2013, the 2012 Taxpayer Relief Act was enacted and the Bush-era tax cuts, which were scheduled to sunset at the end of 2012, were permanently
More informationTOOLS AND TECHNIQUES OF INCOME TAX PLANNING 3 RD EDITION
TOOLS AND TECHNIQUES OF INCOME TAX PLANNING 3 RD EDITION 2012 Supplement Chapter 2 p. 11 In 2012 the income threshold for married person filing jointly is $19,500 (if one spouse is blind or elderly 20,650;
More informationSK Wealth Management, LLC November 18, 2014
SK Wealth Management, LLC Jason Archambault, CFP, CPA/PFS Managing Member 55 Dorrance Street Providence, RI 02903 401-331-1575 jarchambault@skwealth.com http://skwealth.com 2015 Key Numbers SKWealth clients
More informationAmerican Taxpayer Relief Act of 2012 Changes Effective in New Law Before Law Change Date Page 1 Alternative Minimum Tax (AMT) Individuals AMT
American Taxpayer Relief Act of 202 Changes Effective in 202 Effective QF New Law Before Law Change Date Page Alternative Minimum Tax (AMT) Individuals AMT 2-3 For 202, the AMT exemption amounts are: $50,600
More informationS&P Capital IQ Financial Communications Tax Guide. What You Need to Know About the New Rules
S&P Capital IQ Financial Communications 2013 Tax Guide What You Need to Know About the New Rules Tax Guide 2013 This guide is not intended to be tax advice and should not be treated as such. Each individual
More informationIndividual Taxation and Planning
Individual Taxation and Planning Brandy Bradley, CPA May 19, 2016 Tax Bracket Comparison 2016 & 2012 2016 MARRIED FILING JOINT 10% - up to $18,550 15% - $18,551 - $75,300 25% - $75,301 - $151,900 28% -
More informationYear-End Tax Planning Letter
2013 Year-End Tax Planning Letter 54 North Country Road Miller Place, NY 11764 (877) 474-3747 or (631) 474-9400 www.ceschinipllc.com Introduction Tax planning is inherently complex, with the most powerful
More information2017 tax planning tables
217 tax planning tables 217 important deadlines Last day to... January 31 Issue 199 to service providers, issue paper/e-filing of 199 s to IRS March 15 Establish and fund SEP plans for corporations for
More informationYear-End Tax Planning Summary December 2018
Year-End Tax Planning Summary December 2018 Overview Tax planning at year-end always presents opportunities, especially in a year that involves significant new tax legislation. This memorandum outlines
More informationMedicare taxes for higher-income taxpayers
Medicare taxes for higher-income taxpayers Facts and planning considerations to help manage your tax liability Begin planning now You ll especially want to discuss these tax provisions with your Financial
More informationNAVIGATING THE 2012 TO 2013 TAX LANDSCAPE
NAVIGATING THE 2012 TO 2013 TAX LANDSCAPE An Advisory Services Publication If man will begin with certainties, he shall end in doubts; but if he will be content to begin with doubts, he will end in certainties.
More informationAPPENDIX G: PROVIDED TAX TABLES
APPENDIX G: PROVIDED TAX TABLES The tax tables and limits below are provided to individuals taking the March 2018 CFP Certification Examination. Exam Window Tax Rates, Tables, & Law Tested July 2017 2017
More informationExecutive Compensation
Executive Compensation Bulletin IRS Issues Two Final Rules With Implications for High-Income Taxpayers Russ Hall and Steve Seelig, Towers Watson January 13, 2014 Recently, the Internal Revenue Service
More informationYear-End Tax Tips for Individuals
Year-End Tax Tips for Individuals New tax legislation has brought greater certainty to year-end planning, but also created new challenges. There is still time to set up an appointment for year-end planning.
More information2011 tax planning tables
2011 tax planning tables 2011 important deadlines Last day to Jan. 18 Pay fourth-quarter 2010 federal individual estimated income tax Jan. 25 Buy in to close a short-against-the-box position (regular-way
More informationFinancial Intelligence
Financial Intelligence Volume 14 Issue 1 Tax Changes and Planning Considerations in 2018 and Beyond by Brent Yanagida, CFP, EA On December 22, 2017, President Trump signed into law the Tax Cuts and Jobs
More informationCannon Financial Institute February 18, 2015
Cannon Financial Institute Duane E. Lee, II, CFP CWS, AIFA, CTFA, CRSP Executive Vice President 649-4 South Milledge Ave. Athens, GA 30604 706-353-3346 dlee@cannonfinancial.com www.cannonfinancial.com
More informationAmerican Taxpayer Relief Act of 2012 & Prospects for Tax Reform
American Taxpayer Relief Act of 2012 & Prospects for Tax Reform Wayne M. Zell, Esq. FPA of the National Capital Area February 1, 2013 Overview A Little Bit of History and 2013 Outlook ATRA 2012 in Detail
More informationPortland Harbor Group of Raymond James January 08, 2018
Portland Harbor Group of Raymond James Claire Cooney, CFP Financial Planning Associate Two Portland Square Suite 701 Portland, ME 04101 207-771-1815 claire.cooney@raymondjames.com www.portlandharborgroup.com
More informationMinimizing the Impact of the 3.8% Medicare Surtax on Estates and Trusts Final Regulations
Minimizing the Impact of the 3.8% Medicare Surtax on Estates and Trusts Final Regulations Jeremiah W. Doyle IV BNY Mellon Wealth Management Boston, MA July, 2014 1 Agenda Background AGI of an estate or
More informationMedicare taxes for higher-income taxpayers
Medicare taxes for higher-income taxpayers Many changes from the 2010 health care reform are now in effect Begin planning now You ll especially want to discuss these tax provisions with your Financial
More informationFinancial Intelligence
Financial Intelligence Volume 13 Issue 1 Estate Planning Part 2: Planning for Distribution of Assets by Brent Yanagida, CFP, EA In our second of a two part series on Estate Planning, we summarize how the
More informationEstate Planning in 2014 and Beyond
Estate Planning in 2014 and Beyond MACPA 10.24.2014 Michael E. Kitces MSFS, MTAX, CFP, CLU, ChFC, RHU, REBC, CASL Partner. Director of Research, Pinnacle Advisory Group Publisher. The Kitces Report, www.kitces.com
More informationPresident Obama Releases 2014 Federal Budget Proposal
Private Wealth Management Products & Services April 2013 President Obama Releases 2014 Federal Budget Proposal 2014 proposal consistent with prior budgets, but enactment is uncertain After more than two
More information2008 Presentation created by: Michael E. Kitces, MSFS, MTAX, CFP, CLU, ChFC, RHU, REBC, CASL, CWPP
Cutting Edge Tax Planning Developments & Opportunities By: Michael E. Kitces, MSFS, MTAX, CFP, CLU, ChFC, RHU, REBC, CASL, CWPP Director of Research, Pinnacle Advisory Group Publisher, The Kitces Report,
More informationTax provisions in administration s FY 2017 budget proposals
Tax provisions in administration s FY 2017 budget proposals Closely Held Businesses and Their Owners February 2016 kpmg.com 1 HIGHLIGHTS OF TAX PROPOSALS IN THE ADMINISTRATION S FISCAL YEAR 2017 BUDGET
More informationFINANCIAL PLANNING LIMITS AND TAX RATE SCHEDULES
Labs: Wealth Management FINANCIAL PLANNING LIMITS AND TAX RATE SCHEDULES Introduction Addressing the complexities of financial planning with your most valuable clients can be difficult. To help, Janus
More information2016 Individual Tax & Estate Planning Update
2016 Individual Tax & Estate Planning Update W. Robert Berkebile, CPA/PFS, CFP Partner, Tax Services Group 1 G. Scott Myers, CPA, CSEP Manager, Tax Services Group Agenda Review of Current Tax Rates and
More informationPLANNING FOR HIGHER MEDICARE TAXES. New taxes go into effect in 2013 // Act before year-end to reposition assets
PLANNING FOR HIGHER MEDICARE TAXES New taxes go into effect in 2013 // Act before year-end to reposition assets KEY TAKEAWAYS In 2013, high-income taxpayers will face an additional 0.9% Medicare tax on
More information2017 Fingertip Tax Guide
2017 Fingertip Tax Guide INCOME TAXES 2017 If Taxable Income Is: 1 Married Filing Jointly Estates and Trusts Single $0 $18,650 $0 + 10% $0 $18,650 $75,900 $1,865 + 15% $18,650 $75,900 $153,100 $10,452.50
More information2016 vs Key Facts and Figures
2016 vs. 2017 Key Facts and Figures Keir Educational Resources compiled the following key facts and figures for the CFP Certification Examination to assist you with your preparation for this comprehensive
More informationWhat the New Tax Laws Mean to You
What the New Tax Laws Mean to You The American Taxpayer Relief Act of 2012 and other 2013 tax provisions January 2013 White Paper AN OVERVIEW OF THE AMERICAN TAXPAYER RELIEF ACT OF 2012 AND OTHER 2013
More informationDTN University Pass It On! Farm Family Estate and Succession Planning
DTN University Pass It On! Farm Family Estate and Succession Planning Marcia Zarley Taylor, DTN Executive Editor Andy Biebl, CPA, Tax Partner, CliftonLarsonAllen LLC Nick Houle, CPA, Tax Partner, CliftonLarsonAllen
More information2018 tax planning guide
Advanced Planning 2018 tax planning guide We are committed to helping you confirm that your current and future tax strategy supports your larger financial goals. Advice. Beyond investing. Your financial
More informationIncome Tax Planning for 2015 and Beyond
Income Tax Planning for 2015 and Beyond Presented by: Michael A. Fritton, CPA 3925 River Crossing Pkwy, Suite 300 Indianapolis, IN 46240 317.472.2200 / 800.469.7206 somersetcpas.com AGENDA Where we are
More informationThe Financial Advisors, LLC January 02, 2019
The Financial Advisors, LLC Louis Bonasera, CPA, PFS, MST CPA Financial Planner 40R Merrimac Street Newburyport, MA 01950-3065 978-857-7315 xx 303 lou@the-financial-advisors.com www.the-financial-advisors.com
More informationInternational Tax Consultants
International Tax Consultants Dear Tax Client: Enclosed you will find your new Tax Organizer for 2017. Please make sure your organizer is complete and all requested material is provided. Only complete
More informationHere is a quick summary of most-important tax changes starting with those that affect individuals. Payroll Tax Holiday Is Over
January 11, 2013 To Our Clients and Friends: The American Taxpayer Relief Act of 2012 (better known as the fiscal cliff legislation) became law on 1/2/13. Due to the expiration of the so-called payroll
More information2017 vs Key Facts and Figures
2017 vs. 2018 Key Facts and Figures Note: We highlighted the information that changed between 2017 and 2018 with a box. * 2018 numbers are based on the Tax Cuts and Jobs Act (TCJA) of 2017. (Note: the
More informationAmerican Taxpayer Relief Act Explained New Phone Number Summer Vacation
August 2013 American Taxpayer Relief Act Explained New Phone Number Summer Vacation We moved last week thank you to our old landlord Costco for 8 ½ great years! We are open for business; our new location
More informationRevised through March 1, 2018
Pocket Tax Tables Revised through March 1, 2018 SELECTIVE TAX RETURN DUE DATES September 17, 2018 October 1, 2018 October 15, 2018 January 15, 2019 April 15, 2019 Third estimated installment. 2017 1041s
More informationSDK s Annual Tax Update
Welcome SDK s Annual Tax Update Welcome from your host Dennis Bidwell dbidwell@sdkcpa.com Agenda Tax Rate Changes (Jennifer Stavish) New 3.8% Medicare Tax (Ryan Churness) Repair Regulations (Laurie Waterman)
More informationPlanning Opportunities in Light of ATRA 2012: What Do We Do Now?
Planning Opportunities in Light of ATRA 2012: What Do We Do Now? Robert S. Keebler, CPA, MST, AEP E-mail: robert.keebler@keeblerandassociates.com Circular 230 Disclosure: To ensure compliance with requirements
More information